Tax filing and payment procedures
he tax year in Egypt is the calendar year. Married persons are
taxed separately, not jointly, on all types of income.
Individuals engaged in business or professional activities must
notify the tax authorities within 30 days of starting such activities
and within 30 days after ceasing activities or relocating. They are
also required to obtain a tax identification card.
Individuals deriving non-commercial profits, regardless of the
amount, must submit annual tax returns and pay tax before
1 April for income derived in the preceding calendar year. The
returns must give details of profits or losses, and must be supported
by the relevant books of account together with all necessary
documents. An individual may request to extend the date of
submitting his tax return if the request is submitted 15 or more
days before the due date for the submission of the return and if,
on the date of submitting the request, the individual pays the
estimated tax stated in the tax return. If the extension request is
submitted in accordance with the above requirements, the date
for submitting the tax return is extended for a period of 60 days.
Employees are not required to submit annual returns for their
Companies must withhold monthly tax from the salaries of employees
and remit such amounts to the tax authorities. They must
submit a quarterly declaration to the relevant tax office in January,
April, July and October of each year. Companies must submit an
annual declaration to the relevant tax office in January of each
year. Free-zone projects must withhold the taxes due from their
employees and remit such amounts to the tax authorities.
Nonresidents with commercial and industrial activities operating
as partnerships must file annual tax returns within four months
after the end of the financial year or within 30 days after the cessation
of their activities.
Tax becomes due and is payable within 30 days after receipt of a
notice of final tax assessment from the tax authorities. If an
individual fails to pay the tax due before the due date, a delay
penalty applies until the date of payment. The delay penalty is
imposed at a rate of 2% plus the credit and discount rate set each
January by the Central Bank of Egypt.